“The input cost on raw material and coal have gone up during the current year, which will reduce margins,” B.L. Bagra, chairman and managing director of NALCO said.
“Our profit may go up by 4-5 percent this fiscal.”
NALCO expects price realizations on aluminum to increase by 7-8 percent in the fiscal year to March 2012 to an average of $2,500-$2,600 per ton.
The country’s third-largest aluminum maker is also in talks with Indonesian mining company PT Antam for setting up a 500,000-ton aluminum smelter and a 1,260 mega watts captive power plant.
“Our talks are positive...,” said Bagra, adding NALCO could invest 25-28 billion rupees ($565-$633 million) in the $3.8-billion joint venture.
Bagra expects India’s aluminum demand to rise by 12-13 percent in this fiscal from 1.6 million tons a year earlier, spurred by demand from power and real estate sectors.
NALCO sees global aluminum demand to grow 3-4 percent, powered mainly by China and India, with some demand seen from Europe and the United States.
NALCO’s joint venture with Nuclear Power Corp. for a 1,400 MW nuclear power plant in western Indian Gujarat state, has been sent for government approval.
“If every thing goes fine by 2014 installation should be completed and production should start in 2015,” Bagra said.
Nalco will invest 17 billion rupees in the venture. 
Bagra said “wild valuations” have thwarted the firm from pressing on with plans to buy uranium mines, one of the raw materials for nuclear power, in Namibia. 
“We have been trying to get some minerals in Africa, Namibia, Guinea, or Latin America — particularly copper, because of certain procedural uncertainty we are not able to make any concrete progress.”